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Positioning in Practice
Strategic Role of Marketing
For large firms that have two or more strategic business units (SBUs), there are generally three levels of strategy: corporate-level strategy, strategic-business-unit-level (or business-level) strategy, and marketing strategy.?A corporate strategy provides direction on the companys mission, the kinds of businesses it should be in, and its growth policies.? A business-level strategy addresses the way a strategic business unit will compete within its industry.? Finally, a marketing strategy provides a plan for pursuing the companys objectives within a specific market segment.? Note that the higher level of strategy provides both the objectives and guidelines for the lower level of strategy.
At corporate level, management must coordinate the activities of multiple strategic business units.? Thus the decisions about the organizations scope and appropriate resource deployments/allocation across its various divisions or businesses are the primary focus of corporate strategy.Attempts to develop and maintain distinctive competencies tend to focus on generating superior financial, capital, and human resources; designing effective organizational structures and processes; and seeking synergy among the firms various businesses.
At business-level strategy, managers focus on how the SBU will compete within its industry.? A major issue addressed in business strategy is how to achieve and sustain a competitive advantage.? Synergy for the unit is sought across product-markets and across functional department within the unit.
The primary purpose of a marketing strategy is to effectively allocate and coordinate marketing resources and activities to accomplish the firms objectives within a specific product-market.?The decisions about the scope of a marketing strategy involve specifying the target market segment(s) to pursue and the breadth of the product line to offered.? At this level of strategy, firms seek competitive advantag
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